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CABLE ANALYSIS

I will make an analysis on GBP / USD or popularly name as CABLE. I used some analysis and some trading strategy. Today I am going to use the analysis of support and resistance. This is a signal from me
Sell GBP / USD at price 1.5900
take profit at the pivot 1.5849
stop loss at resistance 2 price of 1.5945

“Weighted by GDP readings both sides of the Atlantic: in the UK, Q3 GDP came out at 0.7%, dragging the YoY reading down to 2.6%, below estimates of a 3.0%”.

“Better-than-expected US readings highlighted the imbalance between both economies, being the final trigger for the pairs’ slump”.

“As the US session comes to an end, the GBP/USD 1 hour chart shows that the price is developing well below its 20 SMA, whilst RSI reached 18 before correcting some, now again turning lower in oversold levels”.

“In the 4 hours chart technical indicators maintain a strong bearish momentum well into negative territory, all of which supports further declines”.

The start of 2015 looks very familiar to the end of 2014 for many markets around the world as the USD continues to dominate the spectrum and commodity prices fall even further. Or as my colleague Matt Weller so poetically stated already this morning, “New Year, Same Result.” While the EUR/USD is grabbing a lot of the headlines this morning for reaching a 4.5 year low on the back of comments from European Central Bank President Mario Draghi, the GBP/USD is suffering even more greatly, falling over 200 pips since the high set on the last day of 2014.

While I mentioned earlier this week that the 1.56 level might be a particularly difficult to overtake due to technical resistance in that area, I must admit, I didn’t foresee such a strong selloff at that point. Particularly since the reason for the selloff appears to be more based on what the ECB is doing rather than any specific dynamics in the UK, this move may be a little overzealous. Now don’t get me wrong, the GBP isn’t doing itself any favors with Manufacturing PMI coming in lower than anticipated this morning, but not to this extreme.

Therefore, it may be prudent to try to see if there are any levels at which it would seem logical to see a bounce in this currency pair that visually appears to be overreacting. Fortunately, there is one level in particular that fits this bill for three reasons. It is widely known that round numbers often attract attention as our logistical brains seek order in chaos, so 1.54 looks tempting simply based on that principle. In addition to that though, there is a previously established trend line that corresponds with that level along with the completion of an ABCD pattern there as well.

The culmination of those technical patterns as well as the logistic reason for support near 1.54 could give this currency pair reason enough to bounce at that level. Be warned that if you see enough evidence for support, round handles tend to get broken before they bounce. So it may be prudent to wait for the break before hopping on the bandwagon. Also, since I’ve been using movies all week as a backdrop for my articles, let’s collectively tell the GBP/USD that “You Can Do It!”

I personally use shifting averages because powerful assistance as well as opposition amounts, as the marketplace is actually increasing pattern, shifting typical acts like a assistance. Used to do open up PURCHASE placement within the set GBP or UNITED STATES DOLLAR, as well as set up the actual 50 pip consider revenue and prevent lack of 50 pips, We desire these days might produce revenue. We attempted to follow along with the actual pattern, while using shifting typical evaluation is straightforward as well as lucrative

I do not have any idea about this trend about the pair XXXUSD. Since, last year all pair contain XXXUSD have bearish momentum. I have capture the chart of GBPUSD at the date of 07-01-2014. Your prediction in this chart is correct that this pair is in bearish momentum. I have idea that the USD strength is side effect of the end of the QE by the Fed Janet Yellen.
Daily chartimage hosting 10mb limit

Cable edged lower, after industrial production data declined unexpectedly between October and November due to temporary maintenance works on oil and gas rigs in the North Sea while manufacturing sector output surged above estimates.

The GBP/USD pair traded unchanged at 1.5131 levels, up 0.28% on the day, having posted intraday high of 1.5150 levels before the data release. The cable edged slightly lower post the data release as the UK's total industrial production declined unexpectedly by 0.1% in November against expectations of a 0.2% rise. The largest upward driver in November was manufacturing where output surged 0.7%, up from a decline of 0.7% a month before and above estimates of a 0.3%.

However, the mixed data did little to impress the markets as the higher manufacturing output numbers were already priced-in.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5156 (Jan 7 High) above which gains could be extended to 1.52 levels. On the flip side, support is seen at 1.51, below which it could extend losses to 1.5053 levels.

Cable saw a sharp dip to a session low of 1.5076 following the release of today’s headline CPI, which slowed to 0.5% yy in December, down from November’s 1.0% yy. This was even worse than the expected 0.7%, for the lowest reading in almost 15 years and has more or less ruled out any chance of any 2015 rate hike. Core CPI, on the other hand, rose to 1.3% yy although again, it was below expectation of 1.4% yy.

Having fallen sharply to its lows, Cable has since put in a pretty decent performance in recovering, to currently sit at 1.5150, having made a decent attempt to take out the earlier session high of 1.5191, in reaching 1.5188 following the inflation release. Cable is being strongly assisted by positve flows in the cross which headed lower again as traders cut exposure to the Euro ahead of next weeks ECB meeting. The cross today fell from 0.7830 to 0.7755, finishing close to its lows.

Technically, if Cable can take out 1.5190/00, it appears that we could be in for a run towards 1.5215 (200 HMA) and then to the major rising trend-support-now-turned-resistance (from the Jan 09 low at 1.3502) at 1.5255. This area should prove strong resistance, but above here would suggest a false downside break in Cable, and that being the case there is not too much to stand in the way of further gains in Cable, perhaps towards 1.5500, following the sharp fall in thin conditions over the holiday period. I would be rather surprised to see it up here, but if so, I think it would present a decent medium term sell opportunity. Ahead of that, minor Fibo resistances are to be seen from the fall from 1.5620 at 1.5325, 1.5395 and 1.5480.

On the downside, 1.5100 and 1.5075 will provide the initial supports ahead of the important trend low at 1.5033 and 1.5000. Below here would see stops push Cable towards the July 2013 low at 1.4813, which in the short term this appears unlikely, but given the overall longer term view with regards to the dollar up trend I think we are eventually heading in this direction and selling Cable into strength still appears to be the plan.

The short term indicators are reasonably flat so a choppy session looks likely, at least until the dollar gets some direction from the US Retail Sales, so for now, use 1.51/1.52 as a guide.

Sterling remained in red versus the US dollar during the mid-European session, however, retreated from the post-BOE minutes slump and trades back above 1.5100 levels.

The GBP/USD pair traded at 1.5119 levels, down -0.18% on the day, moving away slightly from fresh session lows at 1.5076 levels posted after release of dovish BoE minutes. GBP/USD is seen recouping partial losses as traders digest the outcome of the minutes which indicated that the central bank might not raise rates this year. Moreover, traders also continue to cheer the UK’s employment and wages data which showed an improvement in the country’s labour market conditions.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5200 above which gains could be extended to 1.5236 levels. On the flip side, support is seen at 1.5100 below which it could extend losses to sub 1.5053 (Jan 7 Low) levels.

[lang=ar]the able is trading now around a very low region at 1.56 nd i think that it may be set of its journey to up ward especially with this moderate news about the dollar and also we may notice the good data which comes about the British currency . also we may find the levels of 1.57 soon fro the next week is full of the news which support the idea of rising up and touch higher levels[/lang]

FXStreet (Mumbai) - Cable gave back previous gains and fell back to intraday lows in the early European morning, as the sterling failed to resist the USD strength ahead of crucial retail sales data from the Britain.

The GBP/USD pair traded at 1.4988 levels, recoding -0.15% loss on the day, retreating from day’s high clocked at 1.5025 levels in the early Asian hours. GBP/USD is expected to remain cautious as traders now focus on the UK’s retails sales numbers later in the day for fresh momentum on the pair. The total retail sales are expected to have fallen back 0.6%, down from 1.6% in November.

The GBP/USD pair tumbled to fresh 18-month lows of 1.4969 levels yesterday as a rub-off from EUR/USD after the ECB unveiled its expanded asset purchase program.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5025 (Today’s High) above which gains could be extended to 1.5080 (5-DMA). On the flip side, support is seen at 1.4969 (Jan 22 Low) below which it could extend losses to sub 1.4900 levels.

Research Analysts at Nomura review the IMM data for the week ended January 20, noting that non-commercial accounts sold $1.4bn EUR, $0.8bn GBP and $0.6bn CAD.

Key Quotes

“Unsurprisingly a significant portion of the CHF shorts were closed (specs bought $1.8bn of CHF relative to $3.2bn of shorts as of the prior Tuesday) as the SNB removed the floor and CHF appreciated strongly. Positioning for CHF remains negative however at -$1.4bn.”

“EUR was sold to the tune of $1.4bn on the week ended Tuesday, in anticipation of the ECB announcement of QE. This brought positioning to -$26.1bn, closer to the local lows of -$28.1bn from early November. An estimated $0.3bn of selling since Tuesday brought positioning more net short, to -$26.4bn.”

“CAD shorts were increased as specs sold $0.6bn worth leading into the monetary policy meeting on Wednesday. Our real time indicator suggests specs only added $0.3bn of additional shorts into Friday, despite the significant CAD depreciation.“

“Specs bought $1.8bn of the JPY on the week, bringing positioning to -$8.2bn. While short, positioning is less short than during three quarters of the past year.“

“GBP positioning continued to get shorter with $0.8bn of spec selling, bringing overall positioning to -$4.3bn. This is the most net short GBP has been since August 2013.”